Date post: | 06-May-2015 |
Category: |
Business |
Upload: | devansh-doshi |
View: | 361 times |
Download: | 2 times |
04/11/23 1-1
Product or Offering Product or Offering
Value and Satisfaction Value and Satisfaction
Needs, Wants, and DemandsNeeds, Wants, and Demands
Exchange & TransactionsRelationships & Networks Exchange & TransactionsRelationships & Networks
Target Markets & Segmentation Target Markets & Segmentation
Marketing Channels Marketing Channels
Supply Chain Supply Chain
Competition Competition
Marketing Environment Marketing Environment
Core Concepts of MarketingCore Concepts of Marketing
04/11/23 1-2
Price Promotion
Cost Communication
MarketingMix
ProductPlace
CustomerSolution
Convenience
The Four P’s vs. The Four CsThe Four P’s vs. The Four Cs
04/11/23 1-3
Production ConceptProduction Concept
Product ConceptProduct Concept
Selling ConceptSelling Concept
Marketing ConceptMarketing Concept
Consumers prefer products that are widely available and inexpensive
Consumers favor products that offer the most quality, performance,
or innovative features
Consumers will buy products only ifthe company aggressively
promotes/sells these products
Focuses on needs/ wants of target markets & delivering value
better than competitors
Company Orientations Towards the Marketplace
Company Orientations Towards the Marketplace
04/11/23 1-4
Image valueImage value
Personnel valuePersonnel value
Services valueServices value
Product valueProduct value
Totalcustomer
value
Totalcustomer
value
Monetary costMonetary cost
Time costTime cost
Energy costEnergy cost
Psychic costPsychic cost
Totalcustomer
cost
Totalcustomer
cost
Customerdelivered
value
Customerdelivered
value
Determinants of Customer Delivered Value
Determinants of Customer Delivered Value
04/11/23 1-5
Measuringresults
Diagnosingresults
Takingcorrective
action
ImplementationImplementationPlanningPlanning
Corporateplanning
Divisionplanning
Businessplanning
Productplanning
Organizing
Implementing
ControlControl
Strategic Planning, Implementation, & Control Process
Strategic Planning, Implementation, & Control Process
04/11/23 1-6
Limited number of goals
Stress major policies & values
Define competitive scopes
Good Mission StatementsGood Mission Statements
04/11/23 1-7
3 ?Question marks
? ??21
Cash cow
6
Dogs
8
710x 4x 2x 1.5x 1x 10x 4x 2x 1.5x 1x
Relative Market Share.5x .4x .3x .2x .1x .5x .4x .3x .2x .1x
Stars
5
4
Boston Consulting Group’s Growth-Share Matrix
Boston Consulting Group’s Growth-Share Matrix
20%-20%-18%-18%-16%-16%-14%-14%-12%-12%-10%-10%- 8%-8%- 6%-6%- 4%-4%- 2%-2%- 00M
arke
t G
row
th R
ate
04/11/23 1-8
Market Attractiveness: Competitive
Position Portfolio Classification
Market Attractiveness: Competitive
Position Portfolio Classification
MA
RK
ET
AT
TR
AC
TIV
EN
ES
SM
AR
KE
T A
TT
RA
CT
IVE
NE
SS
5.005.00
3.673.67
2.332.33
1.001.00
Lo
wL
ow
Med
ium
Med
ium
Hig
hH
igh
Reliefvalve
Flexiblediaphragms
Fuelpumps
Aerospacefittings
Clutches
Hydraulicpumps
Joints
StrongStrong MediumMedium WeakWeakBUSINESS STRENGTHBUSINESS STRENGTH
1.001.002.332.333.673.675.005.00
Invest/growInvest/grow Selectivity/earningsSelectivity/earnings Harvest/divestHarvest/divest
04/11/23 1-9
4. Diversification2. Marketdevelopment
Newmarkets
1. Marketpenetration
Existingmarkets
Existingproducts
3. Productdevelopment
Newproducts
Intensive Growth Strategies:Ansoff’s Product/Market Expansion
Grid
Intensive Growth Strategies:Ansoff’s Product/Market Expansion
Grid
04/11/23 1-10
1
4
2
3
HighHigh
LowLow
HighHigh LowLow
Att
ract
iven
ess
Att
ract
iven
ess
Success ProbabilitySuccess Probability OpportunitiesOpportunities
Opportunity MatrixOpportunity Matrix
1.1. Company develops a more Company develops a more powerful lighting systempowerful lighting system
2.2. Company develops a device Company develops a device for measuring the energy for measuring the energy efficiency of any lighting efficiency of any lighting systemsystem
3.3. Company develops a device Company develops a device for measuring illumination for measuring illumination levellevel
4.4. Company develops a Company develops a software program to teach software program to teach lighting fundamentals to TV lighting fundamentals to TV studio personnelstudio personnel
04/11/23 1-11
Threat MatrixThreat Matrix
1.1. Competitor develops a Competitor develops a superior lighting systemsuperior lighting system
2.2. Major prolonged Major prolonged economic depressioneconomic depression
3.3. Higher costsHigher costs
4.4. Legislation to reduce Legislation to reduce number of TV studio number of TV studio licenseslicenses
1
4
2
3
HighHigh
LowLow
HighHigh LowLow
Se
rio
us
nes
sS
eri
ou
sn
ess
Probability of OccurrenceProbability of Occurrence ThreatsThreats
04/11/23 1-12
SkillsSkills
Sharedvalues
Sharedvalues
StaffStaff
StyleStyle
StrategyStrategy
StructureStructure
SystemsSystems
The McKinsey 7-S Framework
The McKinsey 7-S Framework
04/11/23 1-13
Sell the productMake the product
ProcureDesignproduct Make Price Sell Advertise/
promote Distribute Service
(a) Traditional physical process sequence
(b) Value creation & delivery sequence
Choose the Value Provide the Value Communicate the Value
Strategic marketing Tactical marketing
The Value-Delivery ProcessThe Value-Delivery Process
04/11/23 1-14
Executive Summary & Table of Contents
Current Marketing Situation
Opportunity & Issue Analysis
Objectives
Marketing Strategy
Action Programs
Projected Profit-and-loss
Controls
The Marketing PlanThe Marketing Plan
04/11/23 1-15
Defining the Problem & Research Objectives
Defining the Problem & Research Objectives
ExploratoryResearch
DescriptiveResearch
CausalResearch
•Test cause-and-effect relationships.
•Tests hypotheses about cause- and-effect relationships.
•Test cause-and-effect relationships.
•Tests hypotheses about cause- and-effect relationships.
•Sheds light on problem - suggest solutions or
new ideas.
•Sheds light on problem - suggest solutions or
new ideas.
•Ascertain magnitudes.•Ascertain magnitudes.
04/11/23 1-16
Research ApproachesResearch Approaches
BehavioralBehavioral
Focus-groupFocus-group
SurveySurvey
ExperimentalExperimental
ObservationalObservational
04/11/23 1-17
Secondary Data SourcesSecondary Data Sources
• Internal SourcesInternal Sources
• Government PublicationsGovernment Publications
• Periodicals and BooksPeriodicals and Books
• Commercial DataCommercial Data
• On-LineOn-Line• AssociationsAssociations• Business InformationBusiness Information
04/11/23 1-18
The Marketing Research Process
The Marketing Research Process
Defining theDefining theproblem andproblem and
researchresearchobjectivesobjectives
Defining theDefining theproblem andproblem and
researchresearchobjectivesobjectives
DevelopingDevelopingthe researchthe research
planplan
DevelopingDevelopingthe researchthe research
planplanCollect the Collect the informationinformationCollect the Collect the informationinformation
Analyze theAnalyze theinformationinformationAnalyze theAnalyze theinformationinformation
Present thePresent thefindingsfindings
Present thePresent thefindingsfindings
04/11/23 1-19
Good Marketing Research...Good Marketing Research...
• Is scientificIs scientific
• Is creativeIs creative
• Uses multiple methodsUses multiple methods
• Realizes interdependence of models & dataRealizes interdependence of models & data
• Acknowledges the cost & value of informationAcknowledges the cost & value of information
• Maintains “healthy” skepticismMaintains “healthy” skepticism
• Is ethicalIs ethical
04/11/23 1-20
Buyer’s decisionprocess
Problem recognitionInformation searchEvaluationDecisionPost-purchase behavior
Otherstimuli
EconomicTechnologicalPoliticalCultural
Buyer’scharacteristics
CulturalSocialPersonalPsychological
Buyer’s decisions
Product choiceBrand choiceDealer choicePurchase timingPurchase amount
Marketingstimuli
ProductPricePlacePromotion
Model of Buying BehaviorModel of Buying Behavior
04/11/23 1-21
CulturalCultural
SocialSocial
Family & LifestyleFamily & Lifestyle
PsychologicalPsychological
BuyerBuyer
Characteristics Affecting Consumer Behavior
Characteristics Affecting Consumer Behavior
04/11/23 1-22
Consumer Buying Roles
DeciderDecider
Buyer Buyer
UserUser
Influencer Influencer
InitiatorInitiator
KeyFamily
DecisionRoles
04/11/23 1-23
ComplexBuying
Behavior
Dissonance-Reducing Buying
Behavior
Variety-SeekingBehavior
HabitualBuying
Behavior
Significantdifferences
betweenbrands
Fewdifferences
betweenbrands
HighInvolvement
LowInvolvement
Four Types of Buying Behavior
Four Types of Buying Behavior
04/11/23 1-24
ProblemProblemrecognitionrecognition
Informationsearch
Evaluation ofalternatives
Purchasedecision
Post-purchasebehavior
Consumer Buying ProcessConsumer Buying Process
04/11/23 1-25
TotalSet Aware-
nessSet
Consid-erationSet
ChoiceSet Decision
Decision Making SetsDecision Making Sets
04/11/23 1-26
Potential Entrants(Threat ofMobility)
Potential Entrants(Threat ofMobility)
Buyers(Buyer power)
Substitutes(Threats ofsubstitutes)
Suppliers(Supplier power)
Suppliers(Supplier power)
IndustryCompetitors
(Segment rivalry)
Five Forces Determining Segment Structural
Attractiveness
Five Forces Determining Segment Structural
Attractiveness
04/11/23 1-27
Specific Attack Strategies
Specific Attack Strategies
• Price-discountPrice-discount• Cheaper goodsCheaper goods• Prestige goodsPrestige goods• Product proliferationProduct proliferation• Product innovationProduct innovation• Improved servicesImproved services• Distribution innovationDistribution innovation• Manufacturing cost reductionManufacturing cost reduction• Intensive advertising promotionIntensive advertising promotion
04/11/23 1-28
1. Identify Basesfor Segmenting the Market
2. Develop Profilesof Resulting Segments
3. Develop Measuresof Segment Attractiveness
4. Select TargetSegment(s)
5. Develop Positioningfor Each Target Segment
6. Develop MarketingMix for Each Target Segment Market
Positioning
MarketTargeting
Market Segmentation
Steps in Segmentation, Targeting, & Positioning
Steps in Segmentation, Targeting, & Positioning
04/11/23 1-29
Bases for Segmenting Consumer Markets
Bases for Segmenting Consumer Markets
Occasions, Benefits, Uses, or Attitudes
Behavioral
GeographicRegion, City or MetroSize, Density, Climate Demographic
Age, Gender, Family size and Fife cycle, Race, Occupation, or Income ...
Lifestyle or PersonalityPsychographic
04/11/23 1-30
Product DifferentiationProduct Differentiation
Form FeaturesPerfor-mance
Quality Conform-
anceQuality
Durability ReliabilityRepair-
abilityStyle Design
04/11/23 1-31
Differences Worth Establishing
AffordableAffordable SuperiorSuperior
ProfitableProfitable
PreemptivePreemptive
DistinctiveDistinctive
ImportantImportant
04/11/23 1-32
… … the act of designing the the act of designing the company’s offering and image to company’s offering and image to occupy a distinctive place in the occupy a distinctive place in the
the target market’s mind. the target market’s mind.
p. 298
Positioning is...Positioning is...
04/11/23 1-33
IdeaIdeaGenerationGeneration
ConceptConceptDevelopmentDevelopmentand Testingand Testing
MarketingMarketingStrategyStrategy
DevelopmentDevelopment
IdeaIdeaScreeningScreening
BusinessBusinessAnalysisAnalysis
ProductProductDevelopmentDevelopment
MarketMarketTestingTesting
CommercializationCommercialization
New Product Development ProcessNew Product Development Process
04/11/23 1-34
What is a Brand?What is a Brand?
Attributes Benefits Values
Culture
User
Personality
04/11/23 1-35
Brand StrategiesBrand Strategies
BrandExtension
New
Bra
nd
Nam
e
Product Category
LineExtension
Existing
Existing
MultibrandsNew NewBrands
04/11/23 1-36
The Three C’s Modelfor Price Setting
Costs Competitors’prices andprices ofsubstitutes
Customers’assessmentof uniqueproductfeatures
Low Price
No possibleprofit at
this price
High Price
No possibledemand atthis price
04/11/23 1-37
AdvertisingAdvertising
Personal SellingPersonal Selling
Any Paid Form of Non-personal Presentation by an Identified
Sponsor.
Any Paid Form of Non-personal Presentation by an Identified
Sponsor.
Sales Promotion Short-term Incentives to Encourage Trial or Purchase.
Public Relations
Direct MarketingDirect Communications With
Individuals to Obtain Immediate Response.
Protect and/or Promote Company’s Image/products.
Personal Presentations.
The Marketing Communications MixThe Marketing Communications Mix
04/11/23 1-38
AdvertisingPublic, Pervasive, Expressive, Impersonal
AdvertisingPublic, Pervasive, Expressive, Impersonal
Sales PromotionCommunication, Incentive, Invitation
Sales PromotionCommunication, Incentive, Invitation
Public Relations & PublicityCredibility, Surprise, Dramatization
Public Relations & PublicityCredibility, Surprise, Dramatization
Personal SellingPersonal Confrontation, Cultivation, Response
Personal SellingPersonal Confrontation, Cultivation, Response
Direct MarketingNonpublic, Customized, Up-to-Date, Interactive
Direct MarketingNonpublic, Customized, Up-to-Date, Interactive
Step 6: Decide on Communications Mix
Step 6: Decide on Communications Mix